Setting yourself up for success in the new year

Welcome to a new year – the perfect time to set down some goals for the year. We don’t call them resolutions because we know how easily they can be broken!

If you want to make 2025 a year to remember, a good place to start could be your finances. By putting some simple things in place now, you could set yourself up for success – and make your money work for you this year.

Take control of your finances with a budget

Don't worry, budgeting isn't just about cutting back. It's about feeling organised and confident when it comes to your money. Don’t believe us? Well, we can help you make budgeting easy and straightforward – and we have the tips to prove it.

Why care about budgeting?

Think of a budget as a financial GPS. It helps you navigate your income and expenses, and supports you to stay on the right track towards your financial goals.

We all know that last year was an expensive one, thanks to inflation and cost-of-living pressures. In uncertain times, having a budget in place could keep you on the right path and help you avoid falling into debt. Not convinced? Let’s look at the benefits of a budget:

• Budgeting puts you in control, allowing you to track your spending and to live within your means.
• With a solid budget, you'll be able to start having funds set aside for emergencies and avoid nasty financial surprises.
• Whether it's a dream holiday, buying a property, or saving for the future, a budget helps you assign funds towards what matters most.
• Knowing you have a money plan can ease the anxiety and stress that can come with financial uncertainty.

How to set a successful budget

If we’ve convinced you and you’re keen to start managing your money wisely, here are some simple steps to follow to get started with budgeting.

1. Take stock of your finances

Start by listing all your income sources and categorising your expenses. Be thorough because this is the all-important foundation of your new budget.

2. Set clear goals

Decide what you want to achieve this year to give your budget purpose. Are you saving for a new car, paying off your student loan, or do you just want your fortnightly pay to go further?

Try using the SMART principles to get your goals set:

• Specific: Know exactly what you're saving for.
• Measurable: Track your progress regularly.
• Achievable: Set goals within your reach.
• Realistic: Be honest about what you can afford.
• Time-bound: Set deadlines to keep you motivated.

An example of this could be:
“To pay off my HECS debt sooner, I will make an additional payment of $1,000 over the next six months. I will do this by setting up an automatic transfer of $76.92 per fortnightly pay cycle.”

3. Prioritise essential expenses

Focus on necessities like housing, utilities, groceries, and healthcare. Cut back on non-essentials and look for ways to save on the must-haves.

4. Track and adjust

Review your new budget regularly. Life happens and your budget should be flexible so you can deal with any changes.

Tools to help you budget

Using budgeting tools like planners or apps can help you stay organised and easily identify where you can make adjustments within your budget.

A budget planner calculator is designed to help you create a detailed budget. It breaks down your expenses and income, and makes it easy to see where your money goes and where you can cut back.

A budgeting app, like mymo by P&N Bank can make budgeting a breeze. With the app, you can:

• Link all your Australian bank accounts and keep track of all your money in the one place.
• Create recurring bills and set up reminders for when they're due, helping you avoid late fees.
• Set personal savings goals tailored to your needs and then track your progress.
• Automate regular transfers to your savings accounts to ensure consistent saving.
• Track your spending and get a real-time overview of your finances so you can stay accountable.
• Change your goals and your budget as your financial situation changes.
• Gain financial insights and see how your savings goals impact your overall financial health. This helps you to make more informed money decisions.

Heading for success

If you stay disciplined and stick to your budget, you’ll soon be on your way to financial success. By reviewing your budget regularly, adjusting your spending (and saving) as needed, and setting some money aside for unexpected events, it’s possible this new year will be a financially positive one for you and your family. Embrace budgeting and pave the way for a secure financial future.

Remember, if you’re struggling financially, assistance is available. We have a range of tools and services for our customers, and there are national resources you can access including the government’s MoneySmart website.